- New York ruled bundled digital services taxable in the NetDocuments prewritten software case.
- The case involved a Utah-based company providing cloud-based document management services.
- The Administrative Law Judge clarified taxability rules for bundled transactions.
- NetVoyage Corp. petitioned for a revision or refund of sales and use taxes.
- A field audit was conducted for the period June 2017 to November 2019.
- 25 percent of reported New York sales were not taxed due to various errors.
- The company was found to owe USD 301,810.87 plus interest for the audit period.
- The ALJ concluded sales were taxable as prewritten software, not cloud-based services.
- Bundled taxable property and non-taxable services sold for one charge are fully taxable.
- The company failed to provide evidence for apportionment of customer fees.
- The case highlights the importance of accurate documentation and invoicing in digital services.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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